Taxation Laws Amendment Act (No. 2) 1995 (169 of 1995)

Schedule 3   VARIOUS AMENDMENTS OF THE INCOME TAX ASSESSMENT ACT 1936

Part 1   REFUNDS OF TFN AMOUNTS DEDUCTED IN ERROR

4   After subsection 221YHZD(1AA)

Insert:

"(1AB) Subject to subsection (1AC), if:

(a) in discharging a liability under subsection 221YHZDA(1) or

paragraph 221YHZDAC(1)(d), an investment body refunds to a person the

whole or part of the amount of a deduction made in error during a

financial year; and

(b) the investment body is, apart from this subsection, required

under subsection (1A) of this section to pay to the Commissioner an

amount (the amount to be remitted) deducted, or purportedly deducted,

during the same financial year from a payment of income to that person

or to any other person; and

(c) the investment body makes a record to the effect that it offsets

the whole or part of the refund against the amount to be remitted;

the amount to be remitted is reduced by the whole or the part of the

refund.

"(1AC) The investment body must not record under paragraph (1AB)(c)

that it offsets any part of a refund that:

(a) it has previously recorded under that paragraph; or

(b) it has applied to recover from the Commissioner under subsection

221YHZDA(1) or paragraph 221YHZDAC(1)(d).".